The fully revised seventh edition of this successful textbook explains the legal and diplomatic methods and organisations used to solve international disputes, how they work and when they are used. It looks at diplomatic (negotiation, mediation, inquiry and conciliation) and legal methods (arbitration, judicial settlement). It uses many, up-to-date examples of each method in practice to place the theory of how the law works in real-life situations, demonstrating the strengths and weaknesses of different methods when they are used. Fully updated throughout, the seventh edition includes a new introduction explaining the common principles of settlement and a chapter on investor-state arbitration, as well as recommended further readings at the end of each chapter. It is an essential resource for advanced undergraduate and postgraduate courses on international dispute settlement.